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Bankruptcy and Chapter 7 La Palma is not a Piece of Cake
02 July 2014

It seems that every day we hear about some person or company who has applied for bankruptcy and this can give the impression that this is something which is easy to do. The truth is that yes applying for bankruptcy is common but it is no piece of cake and any attorney legal will tell you that there are many pitfalls.

If you contact an attorney law firm regarding bankruptcy and chapter 7 La Palma, or wherever, you will find that the process is quite complicated and the results are not guaranteed. If you file chapter 7 bankruptcy La Palma this does not mean that it is all smooth sailing and you need to be prepared for many things.

Be ready for creditors to challenge the decision

The 60th day after your meeting of creditors is first set is the deadline for creditors to file lawsuits to challenge the discharge of a particular debt or your entire discharge. If no such lawsuits are filed, shortly after that 60th day you will receive notification of a discharge of debt if you filed chapter 7. You will have no further obligation to repay the discharged debt (although the existence of the discharged debt may still appear in your credit reports), and your creditors can never collect the debt from you.

If you filed chapter 13, you will begin a payment plan. You will receive the notice of discharge of debt 30 to 60 days after your final payment has been made and the trustee ensures your payment plan has been followed and completed.

Filing 7 bankruptcy chapter La Palma could be a way out from your financial problems but you need to be careful that your attorney legal is competent and informs you about the exemptions and other details.

Homestead exemptions – It should probably come as no surprise that the main pieces of property that filers are concerned about when they file for Chapter 7 is their home.

Car or automobile exemptions – A person’s car may also be protected from Chapter 7 creditors and the sale of assets, but state and federal laws will usually put a cap on the amount of the vehicle’s value that will be protected. States vary widely on the amount protected from as little as no exemption, up to the full value of a car. The federal motor vehicle exemption was capped at $3,225 in 2010.

Exemptions for personal property – A wide variety of exemptions exist that apply to different types of personal property. The good news generally is that many types of personal property are often exempt from becoming part of the bankruptcy estate. Just some examples include clothing, jewellery, home furnishings, appliances, and much more. The bad news is that there may be per item limits, as well as a total limit, that may apply to these exemptions.

Bankruptcy and chapter 7 La Palma may be a common occurrence these days but the results will depend a lot on the attorney law firms you select.